Ethereum Sustains Recent Rallies but Struggles Between $395 and $400 Resistance Zones
Oct 22, 2020 at 10:11 //
News
Ethereum bulls have sustained the recent rallies as price retests the resistance at $395 to break it. Earlier on buyers have broken the $380 resistance to push the price into previous highs.
The bulls have been able to sustain the current momentum as the next resistance is being broken. The biggest altcoin will rally to a $475 high if the bulls break the $395 overhead resistance.
However, sellers may want to defend the overhead resistance at $395. In the previous encounter, sellers pushed prices to $361 low before the resumption of a fresh uptrend. Nonetheless, if the bulls fail to break the overhead resistance convincingly, Ether will fall and show signs of weakness. In the meantime, Ethereum is trading above $395 but below $400 high at the time of writing.
Ethereum indicator analysis
The moving averages have made bullish crossover as the 21-day SMA crosses over the 50-day SMA. This gives a trader a buy signal. Besides, the price bars are well above the SMAs which indicate that the coin is rising. Ether is in a bullish momentum as it is above the 70% range of the daily stochastic.
Key Resistance Zones: $220, $240, $260
Key Support Zones: $160, $140, $120
What is the next direction for Ethereum?
Ethereum bulls have made impressive moves as they attempt to break the resistance at $395. According to the Fibonacci tool, a retraced candle body tested the 61.8 % Fibonacci retracement level. This indicates that the market will rise to the 1.618 Fibonacci extension level. This is equivalent to a high of $430.65. Nevertheless, from the price action, the Ether will further move up to a high of $475.
Disclaimer. This analysis and forecast are the personal opinions of the author that are not a recommendation to buy or sell cryptocurrency and should not be viewed as an endorsement by CoinIdol. Readers should do their own research before investing funds.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @coinidol.com By Coin Idol, @Khareem Sudlow